The fashion brand LuLaRoe is the target of a $1 billion lawsuit that claims the company is a pyramid scheme. But the people behind the brand, which sells its products through what they call "individual retailers" or "consultants," say that couldn't be further from the truth. Mark and DeAnne Stidham, who cofounded LuLaRoe four years ago, spoke out in their defense in an interview with CBS News.

On October 23, a class action lawsuit was filed on behalf of three LuLaRoe consultants (Aki Berry, Tiffany Scheffer and Cheryl Hayton) and anyone else who sold products between 2013 and now. The suit claims the company is running a pyramid scheme, in which the true focus is getting more people to join the scheme, not necessarily selling products to customers.

The lawsuit argues that the plaintiffs were recruited "through manipulation and misinformation." The plaintiffs say they were "doomed from the start" and pressured into buying more products they couldn't sell, even encouraged to sell breast milk to make the finances work. The lawsuit seeks $1 billion from the company.

In the interview, the Stidhams admitted that a small group of sellers at higher levels make $500,000 more per year in bonuses, made off the sellers below them. But they say more than half make $1,000 or more a month, and argue claims their company is a pyramid scheme are false.

"We have a multi-billion dollar business. It was not built by tricking people into giving us their money," Mark said, adding that he believes some criticism is coming from competitors. "What that is is an uneducated opinion. They haven't looked at who we are because we sell product through to a consumer, and it's highly-desirable product. That is not a pyramid scheme."

Previously, LuLaRoe faced backlash for what some unhappy customers called defective clothing, which had poor-quality fabric that led to holes and rips. LuLaRoe, which claimed only a tiny percentage of their products had this problem, issued refunds to anyone who was unhappy, and launched a "happiness" policy for customers, offering refunds or exchanges within 90 days of purchase.

DeAnne insists that sellers shouldn't believe that selling for LuLaRoe is going to be easy. "I think it's easy, that's me. Okay, for me in my background in my life experience. I do not say it's easy for everyone," she said. "That's what I think they heard and it's not the truth."

The fashion brand LuLaRoe is the target of a $1 billion lawsuit that claims the company is a pyramid scheme. But the people behind the brand, which sells its products through what they call "individual retailers" or "consultants," say that couldn't be further from the truth. Mark and DeAnne Stidham, who cofounded LuLaRoe four years ago, spoke out in their defense in an interview with CBS News.